Can't solve this, as prices respond immediately, this goes against of the theory of expectations that I learned in class.

High Ination was rampant on Argentina from 1977 to 1991. In January. 1977, a factory worker living in Buenos Aires could have purchased a container of milk at a local supermarket for 1 peso. Returning to the supermarket fourteen years later. the worker would now have to pay over 1 billion pesos for a similar container. Of course. it was not just the price of milk that rose so dramatically. Since 1977. the Consumer Price Index rose at an average annual rate of 333% per year. There was a twelve month period ending in 1990 during which actual inflation was 20,266%. In an economy, such as Argentina from 1977 - 1991, with high ination, prices respond immediately to any type of shock Under a exible exchange rate regime, using the AA-DD framework for the Argentina's economy, analyze the short run and long run effects of a permanent increase in money supply during that period of high inflation. Does the shon run exchange rate overshoot the long run exchange rate